As we see in this daily chart, after a tightening Bollinger Band VTVT broke to the downside on the close of last week when the sector, and SPY was still providing strong tailwinds. That is what turned me bearish on this name as it moves into earnings on Feb 27. The setup
shown on this daily chart makes it very clear. The 3 MAs; 5, 8, and 13 day are above as resistance, as well as, the VWAP all pointing downward.
How I'm playing it: Normally I would buy PUTS but no options are available on RH, so I will use eTrade to short it. If it breaks 2.34 it should head down and test the 200 DMA down around $1.90 in this timeframe at the moment. I will enter the short at around $2.30 setting a stop at $2.62. Ride the price down to the $2.10 sell some of my position for profit and let the rest ride down to the $2.00 physiological with hopes it will drop down to the sell target at $1.85. RSI will be oversold so a bounce could happen. Just a note I
will be watching the BioPharma sector during the trade although VTVT has traded opposite the sector and also didn't ramp with other sector names recently.
Full Disclosure: At the time of this writing I do not have a position in ROKU. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
shown on this daily chart makes it very clear. The 3 MAs; 5, 8, and 13 day are above as resistance, as well as, the VWAP all pointing downward.
How I'm playing it: Normally I would buy PUTS but no options are available on RH, so I will use eTrade to short it. If it breaks 2.34 it should head down and test the 200 DMA down around $1.90 in this timeframe at the moment. I will enter the short at around $2.30 setting a stop at $2.62. Ride the price down to the $2.10 sell some of my position for profit and let the rest ride down to the $2.00 physiological with hopes it will drop down to the sell target at $1.85. RSI will be oversold so a bounce could happen. Just a note I
will be watching the BioPharma sector during the trade although VTVT has traded opposite the sector and also didn't ramp with other sector names recently.
Full Disclosure: At the time of this writing I do not have a position in ROKU. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.